Top 10 Lies Angels Tell

The following presentation was developed by liberally liftingcontent from Frank Peter’s recent blog posted entitled“Top Ten Lies Angels Tell”

Any errors, omissions, or mis-representations are solely myresponsibility and not Frank’s

John MeckeManaging DirectorDevelopmentCorporatejohn.mecke@developmentcorporate.com

1. "That was a good presentation!"

I have to say something positive, but you're not getting me to write a check

My Cool Idea+

A Miracle Occurs Here=

15x Revenue Exitfor all of us

2. "Fix these few issues and come back in six months."

This is so much easier to say to the entrepreneur instead of "you blew it, you're too early". Worst of all, you mean it when you say it even though you know the chances of an entrepreneur re-entering the process is infinitely small, because next time I see you something will nag at me, "wasn't there something flawed with this deal?"

3. "We offer more than just money.”

Like referrals to industry contacts, but all our industry contacts have retired by now.

4. "I don't think he's coachable.“ A self-assured entrepreneur is unlikely to look to me for guidance, so there's no place for me in this deal

5. "I can't believe (name of big company) isn't already doing this.”

I still think big companies innovate.

6. "Let's let him in to present and we can negotiate a lower pre-money during due diligence.”

Maybe in 2006. Today though, just like in real estate, if a property is priced too high, no one will bid. We used to be able to generate interest among our fellow angels even if most felt it was too rich, but not in this economy

7. "I'm looking to give back.“

Who would think in 10 years I wouldn't make any money at angel investing?

But how many are still alive today? And how long has it been since you wrote a check?

8. "I'm in 18 deals."

I forget that it's all about execution

9. "I'm concerned about your barriers to entry."

10. "We're not seeing any quality deals.“

"all the good deals must be going somewhere else”